According to the International Labour Organization, about 27.6 million people worldwide are forced into forced labour, including 3.3 million children. Most forced labour takes place in the private sector but is sometimes imposed by public authorities.
The most violations of workers’ rights in the world:
In April this year, the EU Parliament gave its consent to a new regulation that allows the EU to ban the sale, import and export of goods produced by forced labour.
Member State authorities and the European Commission will be able to investigate suspicious goods, supply chains and manufacturers. If a product is deemed to have been produced by forced labour, it will no longer be possible to sell it on the EU market (including the web shop) and shipments will be intercepted at EU borders.
The regulation includes:
- Suspected use of forced labour to be investigated and, if proven, of products being withdrawn from the market
- Attention to products coming from areas with a high risk of state-imposed forced labour
- Products may be allowed to return to the market if forced labour is eliminated from the supply chain
Investigation
Investigative decisions will be based on factual and verifiable information that can be obtained from international organizations, cooperating bodies and whistleblowers.
Several risk factors and criteria will be considered, including the prevalence of state-imposed forced labour in certain economic sectors and geographical areas.
It sets out the criteria to be used by the Commission and the national competent authorities when assessing the likelihood of an infringement of that Regulation.
The criteria are:
- the extent and severity of the suspected forced labour, including whether state-imposed forced labour may be a cause for concern
- Quantity or scope of products placed or made available on the EU market
- the proportion of parts of the product that are likely to have been created by forced labour in the final product
- the proximity of economic operators to suspected risks of forced labour in their supply chain, as well as their impact on addressing those risks.
Investigations for cases outside the EU will be led by the European Commission, and on the territory of a Member State, investigations will be conducted by the competent authority of that Member State.
The final decision on the ban, withdrawal and/or disposal of the product resulting from forced labour will be made by the investigating authority. A decision taken by a national authority will apply in all other Member States based on the principle of mutual recognition.
Consequences for companies using forced labour
Producers of prohibited goods will have to withdraw their products from the EU single market and donate, recycle or destroy them. Non-compliant companies could be fined. Goods can return to the EU’s single market once a company has eliminated forced labour from its supply chains.
In cases where there will be a risk to the security of supply of critical products that are found to have been caused by forced labour, the competent authority may decide to withdraw the product until it is demonstrated that there is no longer forced labour in its operations or in the operations of its supply chains.
Also, a decision can be made that the entire product does not have to be removed, but only a part of that product that was created by forced labour and replaced with a part of the product of another supplier. In cases where this is not possible, the entire product should be disposed of.
What’s next?
The regulation was adopted with 555 votes in favour, 6 votes against and 45 abstentions. The text now needs to receive the final formal approval of the Council of the EU and will then be published in the Official Journal.
EU countries will have to start applying it in three years.
SA 8000 and ISO 26000 to help prove social responsibility and respect for workers’ rights
The aim of the Regulation is to prevent and eradicate the business model in which companies exploit workers.
With this Regulation and the Corporate Sustainability Reporting Directive (CSRD), there will be pressure from large companies on their suppliers, who will have to prove that production is based on fair and paid work and that human rights are respected.
To ensure quality proof as a supplier and to comply with the requirements of your customers, as a supplier you can implement the ISO 26000 (Social Responsibility) and SA 8000 (Social Responsibility Management) standards. Both standards base their requirements on respect for human rights and responsible social business, which needs to be integrated into all business processes.
Also, you can comply with the Law on the Protection of Whistleblowers, regardless of whether you are not a taxpayer, and thus show your employees, but also other stakeholders, that you take corporate social responsibility seriously.
You can find out more about these standards by making an inquiry on sales@boost.hr and in our previous articles:
What is ISO 26000 standard? – Boost
SA 8000 standard (Social Accountability) – Boost
Sources: Council and Parliament strike a deal to ban products made with forced labour – Consilium (europa.eu)
